Firms increasingly use artificial intelligence (AI) to innovate. Yet, the current literature offers fragmented guidance regarding its use in innovation processes. This study argues that the exponential use of AI has resulted in a mass of disorganised knowledge, creating confusion and frustration surrounding how managers navigate from conventional to digital innovation processes. A systematic literature review was carried out to examine studies investigating AI innovation published over the last decade (2011–2021). The results suggest that AI is present across all innovation phases and that firms have created three unique capabilities: AI-enabled ideation, AI-enabled development, and AI-enabled commercialisation. This article enriches the innovation management literature, and it equips managers with practical guidance in the use of AI.